Research On The Impact Of Asset Management Business Returns Of Securities Companies Under The Background Of The New Rules For Asset Management

On April 27,2018,in order to regulate a series of unreasonable phenomena in the asset management industry,the regulatory agency issued the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions"(hereinafter referred to as "the new rules for asset management")which soon emerged as a focus of study.The existing research on the new rules for asset management focuses less on the asset management business of securities companies.As an important member of the asset management industry,it is of practical significance to study the impact of the securities company's business returns in the context of the new rules for asset management.Therefore,this paper will focus on the asset management of securities companies,and use the event study to test and explore the impact of the new rules for asset management on its earnings.We will start by introducing the existing asset management business types of securities companies to lay a conceptual foundation for the following study which will then review its development history in four stages,focusing on the new requirements of the new rules for asset management.Under the background of the new rules for asset management,the overall scale and issuance of the asset management business of securities companies,active management,and investment in non-standard assets have changed significantly.So,three main mechanisms that the new rules for asset management have an impact on the income of asset management business of securities companies are summarized: the restricted channel business and the multi-layer nesting mechanism;breaking the rigid payment and regulating the capital pool business together with the mechanism of tightening investment in non-standard assets,and three main factors affecting returns can be therefore figured out.To increase the persuasiveness of theoretical analysis,this paper adopts the event study and arrives at the conclusion that relative to changes in the market index,the return on equity asset management business has shown a downward trend in the short term,after which it has rebounded slightly;the fixed income business has shown a significant downward trend;while the FOF business has seen a significant increase.Finally,relevant suggestions were put forward for the future of asset management business of securities companies.It is recommended to seize the opportunities givenby the times for transformation and development,focus on innovation,deploy scientific and technological asset management,and expand its share in the entire asset management industry.On the other hand,Government departments should strengthen the uniformity of supervision,improve the legal system,innovate system construction and increase market vitality.The new rules for asset management have had a profound impact on the asset management business of China's securities companies and even the asset management industry.Further research is needed after the transition period ends.